The manufacturing and launch of a new product would require cash outflows of $92,000 today, $80,000 in 2 year from today and $70,000 in 4 years from today. The net returns would be cash inflows of $3,000 monthly (end of month) for 10 years. The new product would also have a residual value or salvage value (cash inflow) after 10 years of $15,000. If the cost of money is 7% compounded annually, determine the NPV (16.2) of the project.

a) What is the PV today of the $15,000 salvage of the new product in 10 years?

b) What is the TOTAL PV of the Inflows (including the salvage value)

c) What is the PV of the Outflows

d) What is the NPV of the project